RAYMOND JAMES FINANCIAL INC Q2 FY2025 earnings call

• Paul Shoukry mentioned the global top financial adviser conference in Montreal and investment banking managing directors meeting in Tampa, with advisers and bankers expressing enthusiasm for Raymond James' culture and platform. • Fiscal second quarter net revenues were $3.4 billion, pretax income $671 million, up 9% and 10% YOY. First half of fiscal 2025 had record net revenues and pretax income. • Private Client Group had $1.54 trillion of client assets under administration, up 6% YOY. Recruited financial professionals with significant client assets. • Capital Markets investment banking pipeline strong but closings impacted by market uncertainty. • Asset Management had strong net inflows into PCG fee-based accounts. • Bank loans ended at record $48.3 billion, credit quality solid. • Resumed share repurchases, repurchased $250 million in fiscal second quarter and $190 million in April. • Established Chief AI officer role to monitor AI developments for serving clients better.

Private Client Group: Generated pretax income of $431 million on quarterly net revenues of $2.49 billion. PCG assets under administration grew 6% year-over-year. Capital Markets: Quarterly net revenues of $396 million and pretax income of $36 million. Net revenues grew 23% YOY but declined 18% sequentially. Asset Management: Pretax income of $121 million on net revenues of $289 million, driven by higher financial assets under management and strong net inflows. Bank: Net revenues of $434 million and pretax income of $117 million, with loan growth and net interest margin expansion.

• Expect third quarter Asset Management and related administrative fees to be relatively flat with second quarter, benefiting from 1 additional billing day. • Share repurchases plan to continue at a run rate of $400 million to $500 million per quarter to keep capital ratios stable. • Anticipate loan growth to continue with redeployment of AFS portfolio into loans, with approximate $275 million in Q3 and $325 million in Q4.

• Heightened market volatility and potential economic impacts from tariffs creating uncertain market environment. • Tariff negotiations may impact certain corporate borrowers, affecting third quarter loan provision. • Market uncertainty could impact investment banking closings and securities-based lending demand.

Q: About wealth business NNA nuances and pipeline, A: Pipelines are strong with new commits in March and April from various firms across affiliation options, and advisers are attracted to Raymond James' culture, capabilities, and strong balance sheet.

Q: On loan demand, A: Corporate loan demand tepid due to volatility, but strong demand for SBL loans with growth in April.

Q: On recruiting backdrop and M&A, A: Recruiting momentum strong, and advisers look for strength and stability, increasing opportunities with Raymond James.

Q: On loan book and tariffs, A: Tariff impacts not reflected in second quarter results, will impact third quarter.

Q: On M&A attrition and adviser movement, A: Retention good, pipelines optimistic, and advisers move for change in control.

Q: On buyback run rate and capital ratios, A: Plan to buy back $400 million to $500 million per quarter to keep capital ratios stable.

Q: On NII, NIM, and deposit costs, A: Expect spread revenues flat sequentially, deposit beta managed with different buckets, and loan growth impacts outlook.

Q: On non-comp expenses and PCG administrative comp, A: Non-comp expenses expected to ramp up in back half, PCG administrative comp consistent long term.

Q: On Chief AI Officer role, A: Function to monitor AI developments for empowering financial professionals, details to be discussed at Analyst Investor Day.